SEC plans CAT takeover in sweeping market data reform

The U.S. Securities and Exchange Commission has outlined a plan to take control of the Consolidated Audit Trail, replace its funding model, and prepare a transition that could run through late 2027. Summary The SEC has ordered staff to assess direct agency control of CAT and the resources required. A proposed rule could rescind Rule 613 while retaining CAT’s infrastructure and reporting standards. Funding options include congressional appropriations and Section 31 transaction fees. The SEC expects the proposed transition to remain underway until late 2027. The SEC said in an Aug. 10 letter from Chair Paul Atkins to CAT Operating Committee Chair Robert Walley that staff must prepare recommendations for changing how the market surveillance system is funded, governed, and operated. Under the plan, the agency would examine whether CAT expenses could be covered through congressional appropriations or transaction fees collected under Section 31 of the Securities Exchange Act. Staff will also calculate what personnel, technology, and other internal resources the SEC would need to manage the system. A separate rulemaking proposal could remove Rule 613 of the Regulation National Market Syst...